So you live in L.A. and are looking to purchase your first house. Where do you start? While you’ll certainly need to look for a hard money loan Los Angeles eventually, there are a few things you need to get out of the way first. Purchasing a home is a huge commitment and you need to be prepared for any challenges that may arise. To ensure you get a house with the best deal, you should follow these five steps.
1. Take Stock of Your Finances
As any homeowner will tell you, buying a house involves a lot of paperwork. Lenders want to know as much as possible about your ability to repay, so they’ll want to have documentation of the following:
- Income
- Credit history
- Debt-to-income ratio
You should review all of this information before you even submit an application. This allows you to spot problems before there’s a hard hit on your credit. For example, if you have a lot of debt, you may need to dedicate some time to paying it down before you apply for a mortgage.
2. Know What You Want
You should come up with a list of wants and needs before you start your house search. If you and a partner are buying property together, make sure you have a consensus on what takes priority.
While you may not be able to get exactly what you want, having a list of musts can steer you in the right direction. If you have a limited budget, a prioritized list can help you balance your needs and financial means.
3. Shop Around for Loans
It’s always a good idea to look at several hard money direct lenders before signing anything. Different companies may offer promotions or specials that better fit your needs, so it’s in your interest to compare offers.
You may also want to get prequalified or preapproved for a loan before you start looking at properties. This gives you an idea of your price range and means you won’t have to scramble to get funding once you decide on a place.
4. Find a Real Estate Agent
Real estate agents are invaluable resources, especially if you’ve never bought a home before. While many people go it alone, having an agent gives you several advantages:
- Familiarity with the current market
- Network of other realtors showing houses for sale
- Experience negotiating
Perhaps most helpful, realtors know the various strategies people use during negotiation. They can help you know what kind of bid to make.
5. Don’t Settle
Most importantly, don’t settle for something you’re not happy with. While you may need to make compromises here and there, this is ultimately your home and you should enjoy the space. Don’t be pressured to make any choice you’re not sure of; with an investment this large, you should take as much time as you need.Need funding? Direct lenders are a great way to quickly get the cash you need. Most companies offer a variety of financing products, including probate estate loans, commercial real estate loans and trust loans. With the right hard money lender, you can close on a deal within days